Improving Your Logistics to Grow Your Business

All businesses want to grow, but growing a business isn’t an easy task. It is one of the toughest challenges that a company can face. And there are many ways to go about assisting and capturing on that growth. One option that I’d like to talk about today is on improving your logistics.

You may be the best at being the business idea maker, the manufacturer, the seller, but logistics and the supply chain can be confusing and complex. Trust us, we know. Choosing to work with a third-party logistics company (3PL) can help in removing those confusing and complex tasks, as well as aid in your company’s growth.

What is a 3PL?

Depending on the capabilities of your logistics provider, a 3PL is a service company that can handle several or every aspect related to logistics in your supply chain. This can include fulfillment, transportation, supply chain management, transportation tracking and tracing, inventory management, and more. 3PLs can either be asset based or non-asset based.

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3PL’s are a flexible service, meaning you can choose for help in one piece of your logistics puzzle, or have the 3PL assist with the whole enchilada that is your supply chain and logistics. This also makes 3PLs an affordable service because you can choose to get help on only what you need.

You can quickly see how working with a 3PL can help you with any logistics challenges you may be facing. But how can a 3PL improve your logistics overall? And how does that help with your company’s growth?

Lower Costs

This one is easy. Since all 3PLs handle logistics, they have the experience and relationships built within their networks to better run that aspect of your business. They are able to negotiate lower shipping rates and discounts on the services they use. Not to mention, 3PLs offer access to technology that you would otherwise have to pay for yourself. Without a 3PL, it can take you years to find the best shipping providers and services you need to run your logistics smoothly. Working with a 3PL expedites that process while reducing your costs.

Warehousing & Distribution

Need warehousing space? Rather than setting aside money every month on rent for warehousing that you may not always need, take advantage of a 3PLs connections and get warehousing when and where you need it. This means you could have stock warehoused in several locations, expediting your deliveries. Faster distribution means you’ll have happier customers.

Flexibility

3PLs offer flexibility in your logistics by being able to service you on-demand. You can cut costs by removing or reducing transportation and warehousing assets and outsource when demand increases. Companies that have products with a peak season, or increased demands during the holidays can call upon a 3PL as needed during the rollercoaster that is consumer demand.

Additionally, working with a 3PL gives you the flexibility to try different services to see what works best for your company. You can ship your products via truckload, try out intermodal shipping, or have the 3PL help manage your whole logistics operations with a TMS (transportation management system). You get to choose what works best for you company.

Experience

Speaking of what works best for your company, a 3PL will have that experience and insight. They know how to run and manage logistics operations efficiently and help you with that. Looking to expand into a new geographic region or try e-commerce? A 3PL can help by making recommendations on how to best move forward. Regardless of your challenge, a 3PL provider will have the necessary expertise to guide you on the most beneficial path.

Free Up Resources

When growing your business, you need to invest your time and money into where it would make the biggest impact. Logistics can take a lot of capital when doing it all yourself, so outsourcing to a third party can free up your resources. By focusing on what your team and company is best at and outsourcing the logistics, you’ll be able to provide your customers better products and service with your more efficient operations.

3PL Statistics

If you’re still not convinced about outsourcing to a third-party for your logistics, here are some statistics from the 2019 23rd Annual Third-Party Logistics Study. These go to show that improving your logistics can help your business in many ways.

• 75% of shippers said the use of 3PL services has contributed to overall logistics cost reductions.

• 91% of 3PL users report their relationships with 3PL providers are successful and their work has positive results

• 86% of shippers said the use of 3PLs has contributed to improved customer service.

• 58% of shippers indicate they are increasing their use of outsourced logistics services this year.

• 73% of 3PL users agree that 3PLs provide new and innovative ways to improve logistics effectiveness.

These are some of the ways a 3PL can help with improving your logistics and growing your business. Every company is unique and faces its own challenges. The first step in finding out exactly what can your company can improve upon is by having that initial conversation with a 3PL.

With 40 years of experience, a relationship-driven team, and the added benefit of being part of the Burris Logistics family, Trinity Logistics is the 3PL to help your business thrive.